Moody's ups Kohl outlook to stable

Moody's Investors Service said it affirmed Kohl Corp.'s A3 senior unsecured debt rating and changed the outlook to stable from negative based on Kohl's improved operating performance, as evidenced by its improvements in margin and comparable store sales, coupled with the improvement in free cash flow.

The agency said the ratings are supported by Kohl's favorable position in the mid-priced segment of retail, improving free cash flow profile, stable of national brands balanced by a growing portfolio of private, proprietary and licensed product and so-far successful growth strategy.

The ratings also reflect the potential that Kohl's concept may have peaked as formerly poor-performing competitors are now recovering and the cut-throat competitive landscape led by Wal-Mart and Target, the agency said.

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